XCEL _CALIFORNIA PRE-LICENSING EDUCATION -
LIFE, ACCIDENT AND HEALTH INSURANCE
QUESTIONS And Answers Verified 100% Correct
A life insurance policy where the insured can choose where the cash value
can be invested is called - ANSWER variable life
What does the grace period allow a life insurance policyowner to do? -
ANSWER Make a premium payment after the due date without any loss of
coverage
A participating company is also referred to as which type of insurer? -
ANSWER Mutual insurer
How many "activities of daily living" must an insured be UNABLE to
perform in order to meet the chronically ill requirement of a Long-Term
Care policy? - ANSWER Minimum of two activities of daily living
Which of the following is a type of insurance where an insurer transfers
loss exposures from policies written for its insureds? - ANSWER
Reinsurance
Allen has a disability income policy with a $2,500 monthly benefit and a
30-day elimination period. He is unable to work 90 days following an
automobile accident. What will the policy pay? - ANSWER $5,000
When an accidental death benefit is added to a whole life policy, how does
this affect the policy's cash value? - ANSWER Policy's cash value is not
affected
John and Mary have a handicapped child that is financially dependent
upon them. The death of one of the parents would not be financially
disastrous, however the death of both likely would be. Which policy would
be best suited for them? - ANSWER Second-to-die policy
The California Insurance Code allows an individual how many days to
cancel a life policy for a full-refund? - ANSWER Between 10 and 30 days
, How long must life agents keep their transaction records? - ANSWER 5
years
Restoring an insured to the same condition as before a loss is known as -
ANSWER Principle of indemnity
In what order are people on the MRMIP waiting list allowed to enroll? -
ANSWER Based on the date an individual's application is received
What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)?
- ANSWER PCIP was created by the PPACA for people rejected by
private health insurers due to pre-existing conditions
The conditions, times, and circumstances under which an insured is NOT
covered by a health policy are called - ANSWER exclusions
Which of the following is NOT a feature of equity-indexed annuities? -
ANSWER Offers a maximum interest rate that increases annually
Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax
penalty for taking a loan against this policy prior to age 59 1/2? - ANSWER
10%
What is required after a life agent sells an insurance policy to an applicant
without being appointed by the insurer? - ANSWER Notice of appointment
must be submitted to the Commissioner
Premiums are best described as - ANSWER money paid by the insured to
acquire a policy's benefits
Life insurance surplus must be distributed to policyowners at what
frequency? - ANSWER Annually
Which of the following types of information is NOT required for a life
insurance application? - ANSWER Ethnicity
According to the California Insurance Code, how is the word "may"
, interpreted? - ANSWER Permissive
An annuity which is backed by a life insurer's separate account is called
a(n) - ANSWER variable annuity
According to PPACA, what is a health benefits exchange? - ANSWER An
entity to which individuals and small businesses can have access to
affordable health coverage
What area of group health insurance is regulated under the Employee
Retirement Security Act of 1974 (ERISA)? - ANSWER Disclosure and
reporting
When does a life insurance policy's waiver of premium take
effect? -
ANSWER Insured becomes totally
disabled
Which of the following types of life insurance combines a savings
element
along with a flexible premium option? - ANSWER Universal
life
Which entity has jurisdiction over health care coverage providers? -
ANSWER Department of Insurance
Which of the following is NOT a true description of non-medical life
insurance? - ANSWER Applicants are not required to ANSWER medical
questions on the application
Which of the following is NOT a common life insurance policy rider? -
ANSWER extended term
MRMIP is a - ANSWER state program that offers health coverage to
California residents who are not able to obtain coverage due to pre-
existing conditions
Which of the following types of life insurance is normally associated with a
LIFE, ACCIDENT AND HEALTH INSURANCE
QUESTIONS And Answers Verified 100% Correct
A life insurance policy where the insured can choose where the cash value
can be invested is called - ANSWER variable life
What does the grace period allow a life insurance policyowner to do? -
ANSWER Make a premium payment after the due date without any loss of
coverage
A participating company is also referred to as which type of insurer? -
ANSWER Mutual insurer
How many "activities of daily living" must an insured be UNABLE to
perform in order to meet the chronically ill requirement of a Long-Term
Care policy? - ANSWER Minimum of two activities of daily living
Which of the following is a type of insurance where an insurer transfers
loss exposures from policies written for its insureds? - ANSWER
Reinsurance
Allen has a disability income policy with a $2,500 monthly benefit and a
30-day elimination period. He is unable to work 90 days following an
automobile accident. What will the policy pay? - ANSWER $5,000
When an accidental death benefit is added to a whole life policy, how does
this affect the policy's cash value? - ANSWER Policy's cash value is not
affected
John and Mary have a handicapped child that is financially dependent
upon them. The death of one of the parents would not be financially
disastrous, however the death of both likely would be. Which policy would
be best suited for them? - ANSWER Second-to-die policy
The California Insurance Code allows an individual how many days to
cancel a life policy for a full-refund? - ANSWER Between 10 and 30 days
, How long must life agents keep their transaction records? - ANSWER 5
years
Restoring an insured to the same condition as before a loss is known as -
ANSWER Principle of indemnity
In what order are people on the MRMIP waiting list allowed to enroll? -
ANSWER Based on the date an individual's application is received
What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)?
- ANSWER PCIP was created by the PPACA for people rejected by
private health insurers due to pre-existing conditions
The conditions, times, and circumstances under which an insured is NOT
covered by a health policy are called - ANSWER exclusions
Which of the following is NOT a feature of equity-indexed annuities? -
ANSWER Offers a maximum interest rate that increases annually
Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax
penalty for taking a loan against this policy prior to age 59 1/2? - ANSWER
10%
What is required after a life agent sells an insurance policy to an applicant
without being appointed by the insurer? - ANSWER Notice of appointment
must be submitted to the Commissioner
Premiums are best described as - ANSWER money paid by the insured to
acquire a policy's benefits
Life insurance surplus must be distributed to policyowners at what
frequency? - ANSWER Annually
Which of the following types of information is NOT required for a life
insurance application? - ANSWER Ethnicity
According to the California Insurance Code, how is the word "may"
, interpreted? - ANSWER Permissive
An annuity which is backed by a life insurer's separate account is called
a(n) - ANSWER variable annuity
According to PPACA, what is a health benefits exchange? - ANSWER An
entity to which individuals and small businesses can have access to
affordable health coverage
What area of group health insurance is regulated under the Employee
Retirement Security Act of 1974 (ERISA)? - ANSWER Disclosure and
reporting
When does a life insurance policy's waiver of premium take
effect? -
ANSWER Insured becomes totally
disabled
Which of the following types of life insurance combines a savings
element
along with a flexible premium option? - ANSWER Universal
life
Which entity has jurisdiction over health care coverage providers? -
ANSWER Department of Insurance
Which of the following is NOT a true description of non-medical life
insurance? - ANSWER Applicants are not required to ANSWER medical
questions on the application
Which of the following is NOT a common life insurance policy rider? -
ANSWER extended term
MRMIP is a - ANSWER state program that offers health coverage to
California residents who are not able to obtain coverage due to pre-
existing conditions
Which of the following types of life insurance is normally associated with a
